Mumbai, October 19, 2026: A BMC-owned 5,166-square-metre plot in Lower Parel, currently housing the civic body’s testing laboratory, has attracted a top bid of Rs 470 crore from Skystead Constructions LLP.
The civic administration has proposed a 30-year lease, extendable by another 30 years under the policy prevailing at renewal. The plot is the fourth being leased under the BMC’s drive to generate revenue for infrastructure projects.
The bid is 3.3% above the Rs 455-crore base price, with the only other bidder, Skylark Private Limited, quoting Rs 459 crore. The proposal before the BMC Improvement Committee seeks approval to award the lease and remove the plot’s ‘Other Institutions’ reservation under Development Plan 2034. The change will be processed under Section 37(1) of the MRTP Act, 1966, which provides for public objections and suggestions.
Replacement Laboratory To Be Built
The successful bidder must construct and hand over a 1,299-square-metre replacement laboratory at its own cost. The existing facility cannot be demolished until temporary arrangements are made in consultation with the concerned department and the replacement facility is ready.
Located along Sudam Kalu Ahire Road, the plot is affected by an approved 18.3-metre road line. The final plot area—and consequently the bid amount—will be subject to a joint measurement by the Superintendent of Land Records.
Payment Schedule And Lease Terms
As per the tender conditions, the proposed payment schedule requires 30% of the accepted bid within a month of the letter of acceptance, with the remaining 70% payable in instalments over eight months.
Delayed payments will attract 12% annual interest, while default could trigger cancellation and forfeiture of deposits. The letter of acceptance will be issued only after the reservation is removed, states the proposal.
The initial lease rent is proposed at Rs 11 per square metre annually for the first 30 years, subject to a minimum of Rs 11,000 for open land. Rent for any extended lease period will be determined under the policy then in force.
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BMC Continues Land Monetisation Drive
In June 2025, the BMC auctioned two high-value plots near Crawford Market and the Worli Asphalt Plant, raising Rs 1,152 crore. In September 2026, the BMC’s civic house cleared a proposal to lease its 6.17-acre Century Mills land in Lower Parel to a private developer for Rs 1,351 crore, under a 30-year lease renewable for another 30 years.
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